Other tax relief deductions 10 - Annual payments made

You must withhold Income Tax at basic rate from the amount you pay if you make annual payments to someone under a legal obligation in connection with your trade or profession

Example

Joan owes £100 copyright fees to AZ World for using their maps in her work. She withholds £20 (£100 x 20%) and pays AZ World £80. She enters £80 in this field.